puestion 5.3DC-Marvel would like to evaluate one of the product lines that they sell to defense department. Everymonth the company produces an identical number of units, although the sales in units differ frommonth to month.Product BSelling price$109Units in beginning inventoryUnits producedUnits sold3606,9007,200Variable costs per unit:$29$31Direct materialsDirect labourVariable manufacturing overhead$2Variable selling and administrative$7Fixed costs:$53,500$145,000Fixed manufacturing overheadFixed selling and administrativeSubmission Instructions:1. Compute the Contribution Margin.2. Compute the Operating Income under Variable Costing.3. Prepare a reconciliation from your Operating Income under Variable Costing to OperatingIncome under Absorption Costing. Show the differences between each method.

The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

DC-Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the company produces an identical number of units, although the sales in units differ from month to month. Product B Selling price $109 Units in beginning inventory Units produced 360 6,900 7,200 Units sold Variable costs per unit: Direct materials $29 S31 $2 Direct labour Variable manufacturing overhead Variable selling and administrative $7 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $53,500 $145,000 Submission Instructions: 1. Compute the Contribution Margin. 2. Compute the Operating Income under Variable Costing. 3. Prepare a reconciliation from your Operating Income under Variable Costing to Operating Income under Absorption Costing. Show the differences between each method.

DC-Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the company produces an identical number of units, although the sales in units differ from month to month. Product B Selling price $109 Units in beginning inventory Units produced 360 6,900 7,200 Units sold Variable costs per unit: Direct materials $29 S31 $2 Direct labour Variable manufacturing overhead Variable selling and administrative $7 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $53,500 $145,000 Submission Instructions: 1. Compute the Contribution Margin. 2. Compute the Operating Income under Variable Costing. 3. Prepare a reconciliation from your Operating Income under Variable Costing to Operating Income under Absorption Costing. Show the differences between each method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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